Template-Type: ReDIF-Article 1.0 Author-Name: Yousef Jahmani Author-Name: Hae Yeon Choi Author-Name: Yonpae Park Author-Name: Gavin Jiayun Wu Title: THE VALUE RELEVANCE OF OTHER COMPREHENSIVE INCOME AND ITS COMPONENTS Abstract: The value relevance of comprehensive income, other comprehensive income, and its components were investigated in this paper. Using data of S&P 500 for 2014 and utilizing the pricing model developed by Ohlson, the results suggest that both comprehensive income and other comprehensive income have no value relevance as measured by the coefficient of determination (R2). However, the components of other comprehensive income, such as derivatives, hedging and gains and losses from available for sale securities do have value relevance. The results of this research support the Financial Accounting Standard Board position on disclosure of other comprehensive income and its components Classification-JEL: G10, M41 Keywords: Value Relevance, Comprehensive Income, Other Comprehensive Income, Firm Value,Book Value Journal: Accounting & Taxation Pages: 1-11 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:1-11 Template-Type: ReDIF-Article 1.0 Author-Name: Lynda S. Livingston Title: RETURNS AND ATTRIBUTION FROM A STUDENTMANAGED PEER-TO-PEER LOAN FUND Abstract: Many business schools run equity-based student-managed funds. However, few extend that experiential learning opportunity to incorporate fixed-income assets. In this paper, we report the seven-year results from a unique student-managed fund of peer-to-peer (P2P) loans. The minimum investment in these loans is low enough to allow even the smallest schools to offer students opportunities for meaningful, ongoing credit analysis. Our results show that P2P returns can be high, that defaults are significant, and that active management can add value in this market. They also support our contention that the institutional money now swamping the market is making P2P lending less attractive for retail investors Classification-JEL: G11, G21 Keywords: Student Managed Funds; Peer-To-Peer Lending Journal: Accounting & Taxation Pages: 13-29 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:13-28 Template-Type: ReDIF-Article 1.0 Author-Name: Salem Lotfi Boumediene Author-Name: Emna Boumediene Author-Name: Ikram Amara Title: THE IMPACT OF FAIR VALUE ON AUDIT QUALITY: EVIDENCE FROM TUNISIA Abstract: This study collects the views of Tunisian external auditors about the impact of audit challenges related to fair value on audit quality and the role of the International Standards on Auditing (ISA) 540 in mitigating these challenges. Based on responses from 52 Auditors to our questionnaire, we found out that the fair value is perceived as engendering technical difficulties for auditors. However, these challenges at fair value have no negative impact on audit quality. On the other hand, 78.8% of our respondents believe that the International Standards on Auditing 540 plays a significant role in mitigating the audit challenges related to fair value. Thus our study shows that in the eyes of Tunisian external auditors, benefits of fair value outweigh its disadvantages and the International Standards on Auditing 540 provide auditors by all the necessary tools to deal with audit challenges related to fair value estimates Classification-JEL: M41, M42, C12, C25 Keywords: Audit Quality, Fair Value, International Standards on Auditing, Logistic Regression Journal: Accounting & Taxation Pages: 29-38 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:29-38 Template-Type: ReDIF-Article 1.0 Author-Name: Allan Graham Author-Name: Anup Menon Nandialath Author-Name: Debra Skaradzinski Author-Name: Elzotkeb Rustambekov Title: MACROECONOMIC DETERMINANTS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION: EVIDENCE FROM THE MIDDLE EAST NORTH AFRICA (MENA) REGION Abstract: The adoption of International Financial Reporting Standards (IFRS) as a country’s Generally Accepted Accounting Principles (GAAP) has accelerated in the last 5 years with approximately 120 sovereign governments designating IFRS as the required financial reporting framework for at least some companies in the country. The American Institute of Certified Public Accountants (AICPA) reports that of these, about 90 countries have adopted it fully for all businesses, large and small. In an annual update, PricewaterhouseCoopers (PwC) lists 147 countries that have some relationship with IFRS (the U.S. is listed, for instance, as it allows foreign companies with a capital market presence to use IFRS instead of converting their results to U.S. GAAP). Yet many of the world’s 201 recognized countries have resisted fully adopting IFRS, particularly in the Middle East North Africa (MENA) region of the world. This begs the question: what are the perceived benefits of adopting IFRS at the country level? Classification-JEL: M4, O53 Keywords: International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP), Middle East North Africa (MENA), Macroeconomics, Capital Flows, Disclosure Journal: Accounting & Taxation Pages: 39-48 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:39-48 Template-Type: ReDIF-Article 1.0 Author-Name: Jeff Decker Author-Name: Richard Ray Title: TAX STRATEGIES FOR U.S. FARMERS: TAX REDUCTION AND AVERTING RISK Abstract: This paper presents tax planning strategies specific to farmers. We discuss several opportunities in which a farming operation can either reduce its current tax liability or preserve tax benefits for the future. Under current U.S. tax laws, special provisions exist that are designed to offer the U.S. farmer favorable tax treatment. We specifically highlight these provisions in an effort to remind others of their existence. In addition, there are other provisions within U.S. tax laws that are not so favorable to the U.S. farmer. We provide some suggestions on how the farmer can bypass these rules simply by altering facts and circumstances, which is a lawful behavior. For example, the first strategy we discuss requires the U.S. farmer to plant a secondary crop in order to accelerate cost recovery on an irrigation system. By planting a secondary crop, the farmer has changed the facts and circumstances. Finally, some of the strategies we discuss contain potential risks. We specifically emphasize these risks areas and offer suggestions on how to avoid them Classification-JEL: G18, G38 Keywords: Tax Planning, Farming, Agriculture, U.S. Tax Laws Journal: Accounting & Taxation Pages: 49-61 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:49-61 Template-Type: ReDIF-Article 1.0 Author-Name: Rafiu Oyesola Salawu Author-Name: Titilayo Moromoke Oladejo Author-Name: Eghosa Godwin Inneh Title: GOING CONCERN AND AUDIT OPINION OF NIGERIAN BANKING INDUSTRY Abstract: This paper investigates the relationship between going concern and audit opinion of banks in Nigeria using financial ratio between 2007 and 2012. The study employed secondary source data collection obtained from published financial statements of selected banks and the Factbooks of Nigerian Stock Exchange. Multivariate regressions were employed to determine the effect of financial ratios used as going concern indices such as deposit to total asset (proxy for liquidity), return on capital employed (profitability measure) solvency, operating cashflow to total liabilities and growth on audit opinion. The result reveal that solvency, liquidity (DPA) and profitability (ROCE) have significant relationships with audit opinion. Furthermore, the study showed that going concern could be a signal of financial distress as it reveals the status and capability of banks to continue in operation. Finally, the study recommends the Central Bank of Nigeria should put in place policies that can enhance financial strength and stability of banks. The Nigerian Financial Reporting Council and other regulatory bodies, in line with best practices, should try to organize training and workshops to improve financial skills and expertise of auditors for quality reporting in Nigeria banking industry Classification-JEL: M4 Keywords: Audit, Going Concern, Solvency, Money Deposit Bank Journal: Accounting & Taxation Pages: 63-72 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:63-72 Template-Type: ReDIF-Article 1.0 Author-Name: Ines Menchaoui Author-Name: Jean-Luc Rossignol Author-Name: Mohamed Ali Omri Title: FISCAL MANAGEMENT PRACTICES AND THEIR IMPACT ON CORPORATE GROUPS’ FISCAL PERFORMANCE Abstract: This article analyses the impact of fiscal management practices on the fiscal performance of all the groups of companies whose parent company is listed on the Tunisian Stock Exchange over a period spanning from 2007 to 2011. Our regression results indicate that Tunisian firms use several practices to reduce their tax liabilities. We specifically conclude that the number of intra-group transactions and tax relief are significantly associated with tax avoidance. Transaction cost theory is utilized to identify the relationship between fiscal management practices and fiscal performance. In general, the theory focuses on minimizing transaction costs. It is important to consider transactions between related parties that have different taxation rates offering considerable opportunities of fiscal management practices. So, transfer pricing decisions can involve multiple objectives: the maximization of global profit and the minimization of global taxes Classification-JEL: M40, M41 Keywords: Fiscal Management Practices, Intra-Group Transactions, Tax Relief, Income Shifting Journal: Accounting & Taxation Pages: 73-86 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:73-86 Template-Type: ReDIF-Article 1.0 Author-Name: Ushad Subadar Agathee Author-Name: Ushad Subadar Agathee Title: USAGE AND PERCEPTIONS OF FRAUD DETECTION AND PREVENTIVE METHODS: EVIDENCE FROM MAURITIUS Abstract: The aim of this study is to assess the extent to which junior auditors, senior auditors and professional accountants use fraud prevention and detection methods, and their opinions regarding the effectiveness of these methods in the Mauritian context. A questionnaire was designed and sent to ten most reputed companies including the Big 4 firms. 120 junior auditors, senior auditors and professional accountants responded successfully. The results shows that the techniques mostly adopted to combat fraud are bank reconciliation, staff rotation, cash reviews and password protection. However, virus protection, discovery sampling, reference checks on employees and vendor contract reviews were not often used. In contrast to other prior studies, methods which were frequently used on overall were the ones which have highest mean effectiveness ratings. This study sheds light on the least and most frequent fraud detection and prevention methods used in Mauritius by accounting practitioners. Organization should concentrate on creating an integrated strategy to combat and control any kind of potential risks instead of dealing with each issue separately. Also, organizations should weight up the significant intangible benefits against direct costs of combating fraud. Moreover, organizations should make sure that each abide to the policies and are well aware of the consequences of any malpractice. Finally, this study adds to the existing literature on perceptions of fraud detection methods. To the authors’ prior knowledge, this is the first formal study in the Mauritian context Classification-JEL: M40, M49 Keywords: Forensic Accounting, Internal Auditing, Fraud, Mauritius Journal: Accounting & Taxation Pages: 87-96 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:87-96 Template-Type: ReDIF-Article 1.0 Author-Name: Giuseppe Di Biase Title: EMPIRICAL ANALYSIS OF REAL CREDIT RISK DATA Abstract: One important issue related to credit risk is the analysis of rating transitions and default rates. This consists of examining changes in the rating that international organizations give to firms that agree to be inspected. In this paper real credit risk data from the historical Standard & Poor’s database are used to calculate the actual cumulative default rate. I calculate the indicator considering both the starting rating class assigned to the firms and the elapsed time in the state before the default. The first part the paper points out that essentials of the credit rating and presents some descriptive statistics of the S&P historical database. Next, the paper shows the cumulative default rates of the financial instruments recorded by means an empirical model. The model considers two fundamental facts that standard reports do not contain. First, I consider the time elapsed in a given class before a rating change. I also consider the rating assessment named NR (No Rating) which represents the biggest class of ratings in the database Classification-JEL: G11; G21; C11; C33 Keywords: Standard and Poor's Rating Data, Empirical Model; Default Rate; Rating Transitions Journal: Accounting & Taxation Pages: 97-108 Volume: 9 Issue: 1 Year: 2017 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v9n1-2017/AT-V9N1-2017-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:9:y:2017:i:1:p:97-108